Profit factor is the ratio of total profits to total losses across all closed trades. A profit factor above 1.0 means the provider is net profitable. A profit factor of 2.0 means gross profits are twice gross losses. It is one of the most reliable measures of trading consistency.

What is Profit Factor?

Profit factor is the ratio of total profits to total losses across all closed trades. A profit factor above 1.0 means the provider is net profitable. A profit factor of 2.0 means gross profits are twice gross losses. It is one of the most reliable measures of trading consistency.


Related terms


Frequently asked questions

What is Profit Factor in trading?

Profit factor is the ratio of total profits to total losses across all closed trades. A profit factor above 1.0 means the provider is net profitable. A profit factor of 2.0 means gross profits are twice gross losses. It is one of the most reliable measures of trading consistency.

How does Profit Factor apply to SignalFloor signals?

Profit Factor is used throughout SignalFloor when providers publish and track trading signals. Browse the marketplace to see profit factor concepts applied to live, verified trade ideas.

What terms are related to Profit Factor?

Related concepts include win rate, drawdown. See the SignalFloor trading glossary for full definitions.


See profit factor in live signals

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